- Ethereum price has been denied entrance to the $1,800 level and since fallen 11%.
- The 200-Week moving average has not been retested since the summertime breach and ascension.
- Invalidation of the knife-catch setup depends on the June 18 swing low at $881 remaining unbreached.
Ethereum price could witness one more Wall-Street discount before the next rally occurs.
Ethereum price headed south
Ethereum price has witnessed stiff resistance as the bulls attempted to reconquer the $1800 zone. What at first appeared to be a profit-taking consolidation quickly morphed into an all-out sellers’ frenzy near the $1790 level. The bears took control of the trend as the Fed released surprising Consumer Price Index data. Since the controversial announcement, the ETH price has fallen 11% in less than 24 hours.
Ethereum price currently auctions at $1,579 as the bears have forged an 8-hour candle close beneath the 8-day exponential and 21-day simple moving averages. An uptick in volume appears to have entered the market amidst the decline, and the Relative Strength Index is hovering on the final straw of support.
When combining these factors, the decentralized smart contract giant could witness its final plummet before the Ethereum Merge occurs. Traders should keep their eye on the ETH price for a possible knife catch scenario, as two key levels of support lie below. The first is an Elliot Wave Trend Channel priced at $1,375; the second is the 200-week moving average, currently 19% below the current market value at $1,279.
The Volume profile and Elliot Wave count suggest that the Ethereum price could induce a bullrun from the distinguished barriers targeting $2,000. Invalidation of the uptrend would depend on the June 18 swing low at $881 remaining unbreached.